Your electricity bill
Learn about your electricity bill, electricity rates and rebates and programs to keep your bill low.
Keeping your electricity bill stable
The Ontario government provides electricity bill relief through the Ontario Electricity Rebate (OER) to most:
- residential consumers
- small business consumers
- farm consumers
The government introduced the OER in November 2019 to help keep bills low and show Ontarians the true cost of electricity. This government subsidy represents a cost of $4.8 billion in 2020-2021.
The OER is automatically applied to your electricity bill subtotal and is displayed at the bottom of the bill. If you receive rebates or credits in addition to the OER, your bill will also show the line item Total Ontario Support. Any credits that you qualify for will be included in the total rebate value listed as the Total Ontario Support on your bill.
Learn more about your electricity bill.
Hydro One dividend
The Hydro One dividend supports programs to keep your bill low. The Province of Ontario is Hydro One’s largest shareholder and receives a quarterly dividend that directly supports Ontario’s electricity rate relief programs, credits and rebates.
How the Hydro One dividend works
When Hydro One’s board of directors declares a dividend on common shares, all shareholders of the company as of a certain date are eligible to receive a dividend based on the number of common shares they own. Ontario owns approximately 47% of Hydro One shares.
In the fiscal year 2019-20 Ontario received $291 million in dividends from Hydro One. This equals approximately $60 per electricity customer that benefits from rebates or credits on their bill, in 2019-2020.
Apply for an energy cost rebate
Starting November 16, 2020, businesses that are, or were required to shut down or significantly restrict services due to Covid-19 provincial public health measures (in areas under Red-Control, Grey-Lockdown, Provincewide Shutdown or previously under “modified Stage 2” restrictions) can apply for energy bill rebates for:
- electricity
- natural gas
- propane
- heating oil
Find out if your business is eligible.
Choosing time-of-use or tiered rates
Starting November 1, 2020, Ontario time-of-use (TOU) electricity customers can choose how their electricity is billed.
Regulated Price Plan (RPP) customers will now be able to choose between a:
- time-of-use (TOU)
- tiered rate billing structure
RPP customers include most:
- households
- small businesses
- farms
This change does not apply to customers who chose to leave the RPP, generally through signing up with an electricity retailer.
Choosing the right billing structure for you is not a one-time choice. You can switch between TOU or tiered rate billing structures later if you wish.
Contact your local distribution company (LDC) to apply to change your electricity rate plan. TOU and tiered rates are set by the Ontario Energy Board (OEB) as part of the RPP.
Compare rate plans and calculate your electricity bill under time-of-use and tiered rates.
How to choose which rate is best for you?
You now have the flexibility to choose a billing structure that best suits your lifestyle and reflects your individual electricity use.
If you use most of your electricity during off-peak hours (which are evenings and weekends), time-of-use may be your preferred rate plan.
If you use most of your electricity during weekday hours, tiered pricing may be a better option.
For example:
Sarah works outside the home during the day, does her dishes and laundry in the evening and charges her electric vehicle overnight. Time-of-use billing might be the best option for her lifestyle.
Usman is retired and spends most of his day at home. He does most of his laundry and cooking during the day. Tiered billing might the best option for his lifestyle.
Time-of-use (TOU) Rates
The time-of-use (TOU) rate is the default rate most homes and businesses are billed. TOU rates vary based on time of day and are divided into three periods:
- off-peak
- mid-peak
- on-peak
When demand is low, customers pay a lower rate. When demand is high, customers pay a higher rate.
TOU periods are adjusted by time of year in winter and summer to reflect the changing pattern of Ontario’s electricity use.
Winter
Summer
Off-peak (green)
Demand for electricity is lowest during the off-peak period. Ontario households and small businesses use the majority of their electricity – nearly two thirds of it – during off-peak hours. Off-peak hours include:
- weekends and statutory holidays
- evenings and nights between 7p.m. and 7a.m.
Mid-peak (yellow)
Demand is moderate during this period which happens during the daytime but not the busiest times of day.
On-peak (red)
Demand is highest during the on-peak period. These are the busiest times of day, generally when people are:
- cooking
- starting up their computers
- running heaters or air conditioners
On-peak hours include:
- Winter mornings between 7 and 11am
- Winter evenings between 5 and 7pm
- Summer days between 11am to 5pm
Hours are adjusted during the summer months when air conditioners are used more frequently during the warmest time of day.
See a sample electricity bill with TOU rates.
Tiered Rates
Tiered rates charge a fixed rate for a set amount of electricity consumption.
Rates do not change with demand and remain constant during all hours of the day.
Under tiered rate pricing, residential customers are charged:
- a lower rate for the electricity used up to 1,000 kWh/month in the winter and up to 600 kWh/month in the summer.
- a second, higher rate for all electricity used over 1,000 kWh/month in the winter and over 600 kWh/month in the summer.
Under tiered rate pricing, non-residential customers are charged:
- a lower rate for the electricity up to 750 kWh/month for all seasons.
- a second, higher rate for all electricity used over 750 kWh/month for all seasons.
See a sample electricity bill with tiered rates.
Historical electricity rates
From 2017 to 2019, Ontario electricity rates were partially subsidized by the Fair Hydro Trust. Time-of-use rates and tiered rates from this time period appear lower because they do not represent the true cost of electricity. In November 2019, the Ontario Electricity Rebate (OER) was introduced to show the true cost of electricity.
| Time | May 2017 | May 2017 true cost | July 2017 | July 2017 true cost | May 2018 | May 2018 true cost | May 2019 | May 2019 true cost |
|---|---|---|---|---|---|---|---|---|
| Off-peak | 7.7 | 9.1 | 6.5 | 9.1 | 6.5 | 10 | 6.5 | 9.8 |
| Mid-peak | 11.3 | 13.3 | 9.5 | 13.3 | 9.4 | 14.6 | 9.4 | 14.3 |
| On-peak | 15.7 | 18.5 | 13.2 | 18.5 | 13.2 | 20.3 | 13.4 | 19.9 |
Historical time-of-use rates from May 2010 to May 2020. This graph uses the data from table 1 for the appropriate dates.
| Time | May 2017 | May 2017 true cost | July 2017 | July 2017 true cost | May 2018 | May 2018 true cost | May 2019 | May 2019 true cost |
|---|---|---|---|---|---|---|---|---|
| Lower tier | 9.1 | 10.7 | 7.7 | 10.7 | 7.7 | 11.8 | 7.7 | 11.6 |
| Higher tier | 10.6 | 12.5 | 9 | 12.5 | 8.9 | 13.8 | 8.9 | 13.3 |
Note: Under tiered rates, customers are charged two rates for electricity: a lower rate for the electricity used up to a certain limit, and a second, higher rate for all additional use.
Historical tiered rates from May 2010 to May 2020. This graph uses the data from table 2 for the appropriate dates.
To see more historical rates, please visit the OEB’s Historical Electricity Rates page.
Ontario Electricity Support Program (OESP)
The Ontario Electricity Support Program (OESP) supports eligible low-income customers by providing an on-bill credit ranging from $35 to $75 per month.
Enhanced credits, ranging from $52 to $113 per month, are available for customers that:
- use electric heating,
- use certain medical devices that use a lot of electricity
or - are Indigenous or have at least one family member who is Indigenous living in the household
Rural or Remote Rate Protection Charge (RRRP)
The RRRP program is designed to support eligible customers in rural or remote areas with electricity costs, where the costs of distributing electricity to these customers are higher. The RRRP revenue allows rural and remote electricity distributors to reduce the amount they would otherwise have to charge eligible customers for distribution service. For more information about the RRRP, visit the OEB’s website.
Distribution Rate Protection (DRP)
The Distribution Rate Protection (DRP) program was established for residential customers who live in areas with higher distribution costs. This program is funded through provincial revenues.
The DRP sets the maximum monthly base distribution price that utilities can charge an eligible residential customer for consumption.
First Nations On-reserve Delivery Credit
The First Nations On-reserve Delivery Credit provides on-reserve First Nations electricity customers with a 100% credit to fully offset the costs covered by the delivery line, or the monthly service charge on electricity bills.
The credit applies to residential account holders who:
- live on or within a reserve that is served by a licensed utility
- are a member of a band within the meaning of the federal Indian Act
COVID-19 Energy Assistance Program (CEAP)
The CEAP program is ending. Utilities will continue to provide CEAP credits if they have funds remaining.
You can contact your electricity and/or natural gas utility to determine if they are still accepting applications.
More information is available from the Ontario Energy Board.